Topps Tiles delivers like for like growth

Earlier today, Topps Tiles Plc the UK's largest tile specialist, announced a trading update for the 13 week period ended 30 December 2017.

Like-for-like revenues for the first 13 weeks of the current financial year increased by 3.4% (2017: +0.3%) and the Group ended the period with 371 stores, having closed a net one store during the quarter.

Strategic Progress 

Topps confirmed they continue to invest in their business and are making good progress with the core strategy of "Out-Specialising the Specialists" to extend their market leading position in the domestic tile market.

Specific strategic progress in the period includes:

• Differentiated products now account for almost 90% of our tile sales and are key to their ability to generate market leading gross margins. 
• Further competitive advantage created through investment in their inspirational service offering. Record customer service scores and levels of conversion underpinned a strong outperformance of the UK tile market during the period.
• They have completed the refit of eight pilot stores ahead of their two year all store improvement programme.

In parallel with the growth strategy for their core domestic business, they are progressing the development of a new division targeting the commercial tile market. Building on the acquisition of Parkside Ceramics in September 2017, they are investing in the capabilities necessary for future growth. The Parkside commercial offer was launched at the 100% Designtrade show in October and their first commercial showroom opened in Chelsea in December.

Matthew Williams, Chief Executive Officer, said: "The Group has made an encouraging start to the new financial year with like-for-like sales in Q1 up by 3.4%.  We believe this represents an outperformance of the overall tile market in the period, reflecting the continued success of our strategy of "Out-specialising the Specialists" and some further measured investment in both our trade and retail offer during the period.  Our expansion into the commercial market is also progressing to plan, with the first investments made in the Parkside business adding new capabilities and resource.  While we are pleased with the like-for-like sales growth achieved in Q1, we are retaining our prudent view of market conditions for the year ahead." 

Topps Tiles will hold its Annual General Meeting on 31 January 2018.  In line with previous practice, no further update on trading will be given at this point. The Company will announce a trading update for the 26 weeks ended 31 March 2018 on 4 April 2018. 

Source: Insight DIY Team & Topps Tiles release 

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